ExEx 16005

Community
Capitals
Series # 1

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Measuring Success in Communities:

Understanding the Community Capitals Framework
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven dimensions called
community capitals. Capital is any type of resource capable of producing additional resources. When those resources or assets
are invested, they become capital (Flora, et al. 2004). Community capitals are all of the things in a community that have the
potential to be a resource that can be invested, saved, or used up. This is the first part of the series, an introduction to the com-
munity capitals framework.
The community capitals framework reveals the interactions Communities actively looking to the future can use commu-
between different parts of a community. Communities are nity capitals to measure current resources and identify the
systems that have inflows and outflows, ups and downs, pro- potential for improvements. Researchers have listed seven
gression and regression. types of community capital that can be used as a gauge of
how community resources are being used:
For example, when money is invested in a new factory in the
community, the system is affected either positively or nega- Na t ur a l C a p it a l—the environment, natural beauty, lakes,
tively; more jobs, increased populations, increased pollution, rivers and streams, forests, wildlife, soil, the local landscape.
decrease in unemployment, new housing developments,
increased crime rates, and new immigrant populations are C ult ur a l C a p it a l—ethnicity, generations, stories and tradi-
just a few of the new issues to be dealt with. From an eco- tions, spirituality, habits, and heritage.
nomic development perspective, bringing a new factory to
town seems like a great solution, but it must be understood H u ma n C a p it a l—all the skills and abilities of people, lead-
that it will have an impact on other facets of the community. ership, knowledge, and the ability to access resources.

The seven types of community capital can also be depicted by the following model:

Financial Capital
Income, wealth, Built Capital
Natural Capital security, credit,
Water systems, sewers,
Air, soil, water (quality investment utilities, health
& quantity), systems
landscape, biodiversity
Outcomes
Healthy ecosystems
Vibrant regional economics Political Capital
Cultural Capital Inclusion, voice, power
Cosmovision, Social equity and empowerment
language, rituals,
traditional crops, dress
Human Capital Social Capital
Self-esteem, Leadership, groups,
education, skills, bridging & bonding
health networks, trust,
reciprocity

Olson, David P. 2006. Factors Contributing to the Growth of a Small Town. Ph.D. dissertation, Department of Rural
Sociology, South Dakota State University, Brookings, SD. Adapted from Cornelia Flora’s presentation slides (2005).
 Socia l C a pit a l—groups, organizations, networks in the
community, the sense of belonging, bonds between people.
Polit ica l C a pita l—connections to people in power, access to
resources, leverage, and influence to achieve goals.
Bu ilt C a pita l—buildings and infrastructure in a community,
schools, roads, water and sewer systems, and main streets.
F in a n cia l C a pit a l—money, charitable giving, grants, access
to funding and wealth.
Understanding the Community Capitals
One way to understand the capitals in a community is to
think of them as a community bank with seven accounts.
Each bank account holds the strengths, skills and opportuni-
ties available to and residing within community members.
The contents of each account may be spent, invested, squan-
dered, or used up, depending on how people choose to use
these resources.
Environmental Account - Healthy air, water and soil, forests, mountains, natural beauty
Cultural Account - Stories, traditions, spirit, attitude, habits
People Account - Skills, abilities, leadership, knowledge, wisdom
Community Bank Network Account - Bonds among family & friends, ties to orgaizations & resources
Power & Connection Account - Connections with political and local leaders, voice and power
Building & Infrastucture Account - Telecommunications, roads, industrial parks, main streets
Financial Account - Money, access to funding, grants, wealth
Investing in Communities
While the capitals are separated into seven separate cate-
gories, each of them has a connection with each of the other
types. If a community wants to build a new swimming pool,
for example, it must be able to invest several of the commu-
nity capitals to reach their goal. Here’s how it could work:
Interested community members form a “Build Our Pool”
group to work on the project, and they partner with several
local civic clubs to hold fundraisers (Human, Social and
Build Our Pool Group + Fundraising Partners + Local Government Support
This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16005.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status.
Financial Capital). The mayor and city council agree to sup-
port the project with funding and an available vacant lot with
access to the city water system (Political, Built and Financial
Capital). The community pool project becomes a success!
Five of the seven capitals were needed in this example to
reach the goal and the two remaining capitals could easily be
added to the equation. For instance, Cultural Capital could
be included by holding fundraisers that promote the local
heritage or traditions, such as a German supper or a Native
American wacipi. Natural Capital could be added by includ-
ing improvement of the local landscape, where the vacant lot
that was once an eyesore can become welcoming and attrac-
tive by adding trees and grassy areas around the pool.
How Does Your Community Measure Up?
Once you have identified the capitals in your community,
you can use them as a tool for planning for the future. You
find where your strengths are. You can identify where you
need assistance and where to develop partnerships if com-
munity capitals are lacking. To learn more, read about each
of the seven community capitals in the Community Capitals
Series of Extension Extras:
ExEx16006, Natural Capital
ExEx16007, Cultural Capital
ExEx16008, Human Capital
ExEx16009, Social Capital
ExEx16010, Political Capital
ExEx16011, Built Capital
ExEx16012, Financial Capital
References
Emery, M., S. Fey, C. Flora. 2005, Using Community Capitals to Develop
Assets for Positive Community Change. Community Capitals
Framework: Research, Evaluation and Practice Conference, Ames,
Iowa.
Flora, C., J. Flora, S. Fey. 2004. Rural Communities: Legacy and Change
(2nd Edition). Boulder Colo: Westview Press, 2004.
Flora, C., M. Emery, S. Fey, C. Bregendahl. Community Capitals: A Tool
for Evaluating Strategic Interventions and Projects. Online at
www.ag.iastate.edu/centers/rdev/projects/commcap/7-
capitalshandout.pdf
= Pool Project is Complete
7-2007
 ExEx 16006
Community
Capitals
Series # 2

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Natural Capital
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven dimensions
called community capitals. Capital is any type of resource capable of producing additional resources. When those resources or
assets are invested, they become capital (Flora, et al. 2004). Community capitals are all of the things in a community that have
the potential to be a resource that can be invested, saved, or used up. This is the second in the series.

Natural Capital consists of all the natural resources available If a river is used for recreation and tourism (Social Capital)
to a community. Examples include water, air, soil, biodiver- that will increase the amount of money available in the econ-
sity, and landscape. These natural resources may be scarce or omy (Financial Capital) to be used for community improve-
they may be found in abundance in your community. ments. But tourism and recreation can take away land that
birds and wildlife once occupied, potentially having a nega-
Natural Capital adds to the richness of our communities. tive impact on the environment (Natural Capital). Each of
Depending on where you live, you may benefit from wildlife the capitals are connected and impact each other based on
habitats, wind power, water resources, and fertile soil ideal their use, either positively or negatively.
for farming and ranching. Or you may have resources like
minerals, timber, oil, and natural gas. In its purest form, A Great Investment to Protect
Natural Capital is something that already exists and is not Natural Capital can also be affected by things that are
made by human hands. beyond our control. For instance, droughts and floods impact
our rivers and lakes, fires can wipe out entire sections of for-
These natural assets not only add to the beauty of where we est land, or humans can overuse natural resources until they
live, but also affect the economy, as they attract visitors and are permanently depleted.
new residents who increase sales revenue and create business
opportunities. Remember, capital is defined as a resource
Hydro-Electric
that is capable of producing additional resources. It can be Power
enhanced, changed, used, or used up. Natural
Barge Traffic &
Habitats for
Shipping
Waterfowl
Water as a Natural Capital
As an example of Natural Capital, consider water. Water as a
Natural
Community Capital can provide financial impact by foster- d e c o m p r e s s o r

Irrigation Capital:
ing tourism, which increases the economy. But water also For Water Recreation &
has other impacts that cannot necessarily be measured by Agricultural
Crops
Tourism

dollars and cents, such as increasing the quality of life for

people who enjoy the outdoors and for families who may
Beautiful
spend more time together because of the opportunity to Drinking Water
Surroundings
for Municipal &
Increase
engage in recreational water sports. This resource adds to Rural Systems
Quality of Life
the overall value of the community.
In a state that relies heavily on agriculture and tourism for
economic well-being, South Dakota has a great investment
to protect. Our soil, our rivers and lakes, our mountains and
prairies are all wonderfully unique, and communities need to
recognize how best to use these resources.
Balancing the Community Capitals
The use of Natural Capital may also depend on who owns it,
or who has the rights to it. For instance, land use and land
management may come under the jurisdiction of local, state,
and/or federal entities. Zoning regulations and ordinances
are often designed to both protect certain natural assets as
well as to take advantage of them when considering commu-
nity growth.
vide ways to take advantage of the existence of these natural
resources while taking steps to ensure that these areas are
kept intact for future users. The delicate balance of using
Natural Capital for both public and private good while being
aware of the need to preserve things for future generations is
the challenge facing communities today.
What kind of Natural Capital exists in your community?
What are the benefits? What is the potential? What are the
concerns? What is the best use of these natural resources?
These are questions that communities need to consider as
they plan for their future, understanding that there is an
interconnection between each of the Community Capitals.

Sometimes uses of the capitals can clash, for instance, when

a company wants to establish a factory in a community and
the community doesn’t want it. The problem, popularly
known as “NIMBY,” or Not In My Backyard, is a perfect
example of how communities choose to balance the uses of
community capitals. While the addition of a factory can
enhance Financial and Built Capital, the community mem-
bers may value the other capitals more, including land, air,
and water quality (Natural Capital) or quality of life (Social
and Cultural Capital). This example further supports the fact
that community capitals are a complex system.
State park areas are a good example of the balance between
using the resources as well as conserving them. They pro-
References
Cardi Cornell ACCEE Conference Community Capitals Framework,
retrieved June 11, 2007, from
http://www.cardi.cornell.edu/images/Community%20Capitals%20Frame
work1.ppt.
Emery, M., S. Fey, C. Flora. 2005. Using Community Capitals to Develop
Assets for Positive Community Change. Community Capitals
Framework: Research, Evaluation and Practice. NCRCRD Conference.
Flora, C., J. Flora, S. Fey. 2004, Rural Communities: Legacy and Change
(2nd ed). Boulder Colo: Westview Press.
Stofferahn, C.W. 2005. Do New Generation Cooperatives Make a
Difference? An Analysis of the Impact on Community Capitals.
Community Capitals Framework: Research, Evaluation and Practice.
NCRCRD Conference.
Tweeten, K., R. Vettern. 2005. Watford City, McKenzie County Capitals
Assessment. Community Capitals Framework: Research, Evaluation
and Practice. NCRCRD Conference.

This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16006.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status. 7-2007
 ExEx 16007
Community
Capitals
Series # 3

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Cultural Capital
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven
dimensions called community capitals. Capital is any type of resource capable of producing additional
resources. When those resources or assets are invested, they become capital (Flora, et al. 2004). Community
capitals are all of the things in a community that have the potential to be a resource that can be invested, saved,
or used up. This is the third in the series.

Cultural Capital consists of symbols and language, festivals,
celebrations, and events. Cultural Capital is our shared iden-
tity, things that make us a feel like a community.
Cultural Capital gives each community its own distinctive
character. Many communities have festivals celebrating their
heritage, celebrating events and common themes that exist
by living in that community. Cultural Capital is also formed
when communities live through historic events together, for
instance in the Midwest in the Dirty 30s or in a New York
neighborhood during the terrorist attacks of 9/11.
Cultural Capital is part of our identity, our traditions, and our
understanding of each other. Cultural Capital can be framed
by common occupations such as farming and ranching.
Cultural Capital can also be related to a common attitude; for
instance, Midwestern people are typically known for their
strong work ethic and can-do attitudes. Everything that
shapes our lives—our families, our spirituality, our history,
and our ethnicity—is part of our Cultural Capital.
Cultural Capital as a Resource
Cultural Capital can be used as a resource in the form of
museums and historical societies that help to preserve histo-
ry and also attract people to visit the community. Recall that
Community Capitals are interconnected: communities that
do Main Street revitalizations with historic store fronts are
using their Cultural Capital to develop other kinds of com-
munity capitals such as Financial and Built Capital.
An example of using Cultural Capital for economic gain
through tourism is the community of Deadwood, S.D.
Deadwood’s rich history as a gold rush town of the 1870s
has led to the preservation and restoration of the community.
Along with the addition of gaming activities, Deadwood has
established itself as a National Historic Landmark, using its
Cultural Capital to its advantage.
But for every positive change in enhancing their Financial
Capital through economic development, Deadwood residents
would also tell you that there have been negative impacts as
well. This demonstrates that the seven community capitals
are interrelated and that communities who make plans for
the future need to consider how decisions will affect the
community as a whole.
Unique Cities and Towns
Another example of using the Cultural Capital in a
community is advertising and hosting events that highlight
the community’s claim to fame. Here in South Dakota we
have many examples including the Rhubarb Capital of the
World (Leola), Pheasant Capital of the World (Redfield
and others), Home of the World’s Only Corn Palace
(Mitchell), Potato Capital of the World (Clark), Hay
Capital of the World (Gayville) and many more.
Communities use these common themes to create
festivals and events while promoting tourism and
economic growth; all of which enhance other community
capitals.
 An Example of Cultural Capital as an Asset
The Fort Sisseton Historical Festival is held every June at a former Army outpost built in 1864. It features reenactments of
frontier life at the fort, military demonstrations, music and dancing, storytelling, exploration of the fort grounds and build-
ings such as officers’ quarters and Army barracks, blacksmith shops, and dozens of historical exhibits. This Cultural Capital
can be used to enhance the six other community capitals as follows:

Natural Capital
The state park offers nearby fishing, canoeing, and camping areas. The Fort is located at the top of the Coteau des Prairies,
in the heart of the glacial lakes region of northeast South Dakota.

Human Capital
The Fort Sisseton Historical Festival benefits from the festival's planners, presenters, and historical reenactors who share
their knowledge and expertise of frontier life. Volunteers provide time and labor.

Social Capital
Groups work together each year to plan the festival, partnering with state agencies, committees, vendors, and entertainers.
Networks are established to make the event a reality each year.

Political Capital
Fort Sisseton is a State Historical Park and is managed by the South Dakota Game, Fish & Parks Department. State funding
is used for preservation and upkeep of the State Park area.

Financial Capital
The annual historic festival brings nearly 30,000 visitors to the area, providing increased revenues to local businesses
through tourism dollars. Onsite vendors of food and craft items pay fees and state sales tax.

Built Capital
Fort Sisseton is a National Historic Landmark. It is accessed by both state and county roads which are maintained by both
state and county funds.

Cultural events such as the Fort Sisseton example show how
communities can work together to enhance the resources and
assets available to them. If people can find success in putting
together a cultural event, then they are also capable of work-
ing together to tackle other community issues. In this exam-
ple, state, regional, county, and local resources were neces-
sary to the success of the event, and everyone benefits from
being involved.
Conflicting Cultural Capital
Events and celebrations are just one element of Cultural
Capital in a community. Getting work done depends on
groups being able to work together for common goals.
Cultural differences may sometimes get in the way.
Conflicting Cultural Capital may exist when there are two
different populations living together, with different tradi-
tions, history, and values. Minority populations and new
immigrant populations can add a richness to a community’s
Cultural Capital when the differences are embraced and cel-
ebrated. But those differences can also complicate decision
making in a community when a dominant group tries to
force its values on another.
Our South Dakota communities are constantly changing and
becoming more diverse. These changes can be perceived as a
threat to "what was" or they can be an opportunity of "what
could be.”
Investing in Cultural Capital can enhance tourism, build
social networks, build unity among diverse populations, and
define a community's identity. As your community designs
the future, determine what Cultural Capital exists in your
community, how it is currently being used and how it can be
built upon in the future.
References
Emery, M., S. Fey, C. Flora. 2005. Using Community Capitals to Develop
Assets for Positive Community Change. Community Capitals
Framework: Research, Evaluation and Practice. NCRCRD Conference,
Flora, C., J. Flora, S. Fey. 2004. Rural Communities: Legacy and Change.
(2nd ed). Boulder Colo: Westview Press.
South Dakota Game, Fish and Parks.
http://www.sdgfp.info/Parks/Regions/GlacialLakes/FortSisseton.htm

This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16007.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative
Action/ Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion,
national origin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status. 7-2007
 ExEx 16008
Community
Capitals
Series # 4

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Human Capital
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven
dimensions called community capitals. Capital is any type of resource capable of producing additional
resources. When those resources or assets are invested, they become capital (Flora, et al. 2004). Community
capitals are all of the things in a community that have the potential to be a resource that can be invested, saved,
or used up. This is the fourth in the series.

“Human Capital includes those attributes of individuals that
contribute to their ability to earn a living, strengthen commu-
nity, and otherwise contribute to community organizations,
to their families, and to self-improvement” (Flora et al.
2004). Investments in people are just as important, if not
more important, than investments in the other community
capitals.
Leadership and Education
One of the greatest forms of Human Capital a community
possesses is leadership. Leadership can be either natural or
earned. Like any skill, the more it is practiced the better it
gets.
Too often communities suffer from "STP Syndrome" or the
"same ten people" syndrome where a core group seem to be
the only ones working for community change. The supply of
leaders needs to be developed by adding new people and
enhancing the skills of existing leaders.
Additional Human Capital in communities exists in the form
of educational attainment, both formal and informal. There is
great wealth in tapping into the skills, abilities, and knowl-
edge of community members. Communities that have abun-
dant Human Capital have people who value lifelong learning
and who are always willing to try new ways of thinking.
Creativity—the ability to think in a new way—and possess-
ing the knowledge and skills to solve problems are all forms
of Human Capital.
Human Capital also includes the ability to access outside
knowledge. Community members can build their Human
Capital by taking leadership development courses in schools
and in adult education programs. They can explore local
resources at their Extension office or community college.
There are several ways to build Human Capital:
• Learning—from others, working in groups
• Education—formal and informal, accessing information
at the library or on the Internet
• Experiences—knowledge that creates wisdom
• Leadership development—reading, training, practicing
skills
Attitude is Everything
Attitude can also be a powerful force in communities.
Community members in Eureka, S.D., found a unique way to
deal with the negative attitudes that were a barrier to com-
munity change by holding a "funeral." Community members
were asked to write down the negative attitudes that had held
them back in the past on pieces of paper that were then
burned, placed in an urn, and buried. The headstone at the
grave reads "Here lies the past." This symbolic gesture
helped community members build their Human Capital by
allowing them to move forward with a fresh perspective.
Human Capital can be gained by being resourceful and look-
ing for opportunities to do things differently. Every town has
early adopters, or those people who are the first to latch on
to a new idea. Communities also have what are jokingly
referred to as "C.A.V. E." people, or Citizens Against
Virtually Everything. The best way to deal with “C.A.V. E.”
people is to discover what skills and abilities they possess
and use their strengths to entice them to become a part of the
project.
People are the heart of a community, and often the pursuit of
one idea can demonstrate how interrelated the Community
Capitals are, as shown in this example:
Human Capital: Jane Q. Public wants to walk for exercise,
but there are no walking trails in her community. She learns
about a Leadership Development course being offered by the
local Extension Service and decides to attend. Jane gains
skills in leadership, working with groups and grant writing.
Human, Social, and Natural Capital: Jane partners
with the local hospital administrator who wants to create a
community wide Wellness campaign. She also works with the
chairman of the local parks and recreation board who knows
about a great piece of land adjacent to the river that would be
perfect for a walking trail.
Discovering Human Capital in Communities
Success in communities depends on using every available
asset to its fullest potential. Too often communities don’t
realize the treasure of skills, knowledge, and abilities that
community members possess. Volunteer recruitment and
leadership development are important things for communi-
ties to invest time in. Once individual assets are discovered,
they need to be matched with issues and needs to discover
solutions to common community problems.
Human Capital has one of the strongest ties to each of the
other capitals, because it is community members who get
things done. Ideas, attitudes, willingness to participate,
gumption, and the power of working together is how Human
Capital impacts a community. Mixing individual capacities,
identifying, and using and combining resources together can
benefit both the individual and the community.

Human, Social, Natural, Political, and Financial
Capital:
The newly formed committee works with the city to obtain the
land for the walking path. The local state senator tells Jane
about a grant program available from the state for this type of
project. The local tourism board thinks it would be a great
draw for tourism and provides additional funding for the proj-
ect.
Human, Social, Natural, Political, Financial,
Cultural, and Built Capital: The city and county used
their resources to build the infrastructure for the trail includ-
ing access areas, lighting, and signage. The walking trail is
complete, and thanks to the local historical society, the new
path has historic markers about the river area and benches
every half mile along the trail.
References
Cardi Cornell ACCEE Conference Community Capitals Framework,
retrieved June 11, 2007, from
http://www.cardi.cornell.edu/images/Community%20Capitals%20Frame
work1.ppt.
Emery, M., S. Fey, C. Flora. 2005. Using Community Capitals to Develop
Assets for Positive Community Change. Community Capitals
Framework: Research, Evaluation and Practice. NCRCRD Conference
Eureka! How to keep 'it' after you find it. (June 3, 2004). Retrieved June 11,
2007, from
http://www.usatoday.com/news/opinion/columnist/neuharth/2004-06-03-
neuharth_x.htm
Flora, C., J. Flora, S. Fey. 2004. Rural Communities: Legacy and Change
(2nd Edition). Boulder, Colo. Westview Press.

This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16008.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status. 7-2007
 ExEx 16009
Community
Capitals
Series # 5
(also
ExEx16002)

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Social Capital
Kari Fruechte
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven
dimensions called community capitals. Capital is any type of resource capable of producing additional
resources. When those resources or assets are invested, they become capital (Flora, et al. 2004). Community
capitals are all of the things in a community that have the potential to be a resource that can be invested, saved,
or used up. This is the fifth in the series.

What makes a community a desirable place to live? While • Sense of belonging

the answer may have to do with resources, location, size, or • Feelings of high morale
jobs, ultimately people enjoy living where they feel connect- • Trust
ed and included. Social capital is that network of connections • Goal consensus—many voices in makingdecisions
among individuals and organizations in a community, and • Reciprocity—favors are done with confidence of favors
even between communities themselves. Basically, it’s the being returned
glue that holds a community together. • Network cohesion—sharing between organizations,
agencies, neighbors

Why is Social Capital Important?
Social networking can become one of your community's
greatest resources. Individual, group, and community-wide
efforts are more effective when that network is functioning.
A well-functioning network in a community may be a
resource for shared knowledge and ideas, reciprocal labor
and money, or mutually beneficial endeavors. It can also cre-
ate norms and trust that give
a community its reputation.
When there is a strong presence of social capital in a com-
munity, goals are set and decisions are made based on con-
sensus. Members want to be part of the group; they generally
like each other and get along well. They are loyal and united
in the pursuit of group goals. A shared vision of optimism is
present, not in the form of fantasy but of realistic hope.
Social capital is significant because it affects a rural
community’s capacity to organize for development. Tasks
such as planning, evaluating, mobilizing resources, coordi-
nating activities, and resolving conflicts are more manage-
able in a community that is well connected both internally
and externally.
How Can A Community Develop Social Capital?
Building social capital is a necessary part of any community
development effort. Two types of social capital are involved
in fostering healthy communities. The first is closed social
capital, which is built within the community and may begin
with taking an inventory of existing assets. Getting groups to
communicate and work on projects together also builds
closed social capital.

In a paper from Johns Hopkins University on communica- Bridging social capital among local communities and region-
tion for social change, the authors cite six related dimensions al or state institutions is the next step. Rural communities
to social cohesion (Figueroa et al, 2003): must build cohesiveness internally, and then be willing to
work with other communities to establish bridges necessary
to obtain more regional resources. The goal is for individual
communities to keep their own identities while forging new
relationships with other communities that build a regional
reputation.
Bridging social capital relies on long-term trusting relation-
ships and requires citizens to venture beyond their familiar
communities and culture. In a community setting, bridging
brings together groups of individuals who collectively pos-
sess more knowledge and ideas than individuals acting
alone.
A caution, when building social capital, is to be aware of the
possibility of exclusion. A small, cohesive group may devel-
op that is hard for newcomers to join. Groups based on
racial or ethnic backgrounds, faith, or political preference
are examples of fairly closed groups.While these groups can
have their place in a community, care should be taken to
bridge between these groups and ensure that other, broadly
based community groups are also available that encourage
cross-representation of citizens.
development. This requires a mix of investments in individu-
als, families, and institutions that aim to build trust in exist-
ing and new social networks.
Community-wide social capital depends not on the number
of relationships or groups, but on the quality of relationships
between individuals, institutions, and socially defined
groups. The process takes time and energy, and it is a task
that is never quite complete, but it helps making a communi-
ty a more desirable place to live.
References:
Coleman, J.S. 1988. Social Capital in the Creation of Human Capital. The
American Journal of Sociology 94: S95-S120.
Figueroa, M.E, Kincaid, D. Lawrence, Rani, Manju, and G. Lewis. 2003.
Communication for Social Change: An Integrated Model for
Measuring the Process and Its Outcomes. Johns Hopkins University’s
Center for Communication Programs for the Rockefeller Foundation
Working Paper Series. No. 1.
Schneider, J. 2004. The Role of Social Capital in Building Healthy
Communities. Annie E. Casey Foundation, Making Connections
Initiative. www.aecf.org
The World Bank Group. www1.worldbank.org/prem/poverty/scapital

Conclusion
Strengthening communities where residents have a sense of
ownership and pride is a long-range goal of community

This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16009.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status. 7-2007
 ExEx 16010
Community
Capitals
Series #6

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Political Capital
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven
dimensions called community capitals. Capital is any type of resource capable of producing additional
resources. When those resources or assets are invested, they become capital (Flora, et al. 2004). Community
capitals are all of the things in a community that have the potential to be a resource that can be invested, saved,
or used up. This is the sixth in the series.

Political Capital affects how decisions are made in the com-
munity and how outside resources are brought in. Both indi-
viduals and groups can possess Political Capital. It is based
on organizations, connections, voice, power, and the ability
to influence the distribution of resources.
Having Political Capital is having leverage to get things
done. Political Capital is created when access to power caus-
es a change in resources. Political Capital can affect the other
capitals that exist in a community.
Powerful government officials can make things happen—it’s
“who you know, not what you know.” For instance, represen-
atatives and senators can bring projects and funding to your
community through their places in the government power
structure.
Holding a political office is only one small part of the
Political Capital that exists in a community. Political Capital
can also be found in individuals and groups. For instance, if
faced with the threat of a school closing due to lack of
enrollments, a group may form to battle the threat to the
community. The group may start a letter campaign, get sig-
natures for a petition, or disseminate information to the pub-
lic as a means of exercising their Political Capital muscles.
The Effect of Civic Engagement on Political Capital
Individual actions can increase a community’s Political
Capital. Activities such as voting, discussing politics with
family and friends, and reading the newspaper all add to
their awareness of how the power structures in the communi-
ty and in the nation have an impact on what happens in their
community.
Political Capital can also be gained by being part of a group.
School boards, political-party volunteers, and social, frater-
nal, and other organizations involved in political issues can
also increase the Political Capital in a community. Political
Capital is also gained by developing working relationships
with state and federal officials and politicians. Workers who
belong to a union gain Political Capital through their mem-
bership in that organization. Groups such as these have more
power, more voice, and more leverage because they act
together for a common cause.
Who’s in Power in Your Community?
Cornelia Flora, Director of the North Central Regional
Center for Rural Development (NCRCRD) explains that
power in communities can take many forms and be found in
many people.

Having Political Capital means you have the ability to influ- In some communities, the power is held by elected officials.
ence naysayers, engage state and federal agencies in projects, In other communities, the “real people in power” are those
discover new funding sources, and possess the leverage to who have a reputation of being decision makers. Sometimes,
get things done. too, there are hidden power structures that newcomers to a
community run into when they attempt to cause change.
Community members may know who the "right people" to
talk to are in order to get things done.
Power can be shared by the few or the many depending on
the community. You have to be aware of the Political Capital
that exists in your particular community to accomplish your
goals. Flora also states that community groups need to ask
the question of “who is running this town?” and offers these
four questions to determine who has the power in the com-
munity:
1. Who can best represent the town to the outside?
2. Whose support do you need to get things done?
3. Who is needed to implement a project?
4. Who can stop a project in the community?
When Political Capital is Lacking in a Community
Another important thing to note about Political Capital is
who lacks it? Who are the groups that feel excluded from
the community?
Lack of power and voice can turn into an “us versus them”
atmosphere. When those who lack political voice are unable
to be heard, there is a disconnect that occurs in communities.
Inclusiveness in decision making doesn't happen by acci-
dent. Communities need to make a concerted effort to make
sure that all voices are being heard.
Voting patterns are an indicator of equality in a community.
When people don’t vote, they are basically saying “I don’t
matter." Voting statistics can also be a measure of how
involved people will be in other aspects of community life.
Robert Putnam explains this principle in his book Bowling
Alone: The Collapse and Revival of American Community.
Putnam describes how changes in society in the last third of
the twentieth century have led to decreased involvement in
communities. Putnam writes that “…voters are more likely
to be interested in politics, to give to charity, to volunteer, to
serve on juries, to attend community school board meetings,
to participate in public demonstrations, and to cooperate
with fellow citizens on community affairs.” When people
feel that they lack the power to be heard, they unplug from
community life.
This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16010.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status.
Just as individuals can feel the effects of the lack of Political
Capital, sometimes entire communities can feel a separation
from those in power. The devastating hurricanes that hit the
Louisiana and Mississippi coastline in 2005 are an example
of how there was a breakdown in the Political Capital on a
large scale. This natural disaster amplified the lack of
Political Capital by many of the poorest residents of New
Orleans. Anger, frustration, and distrust of those in power
grew, causing a breakdown in the system and the long-term
effects that are yet to be seen.
Political Capital is strongly affected by Social Capital. Social
capital is the network of connections among individuals and
organizations in a community.
In the hurricane example, as the lack of Political Capital
increased, the Social Capital of the community decreased. In
communities where Social Capital is low—like a disadvan-
taged neighborhood in a Louisiana community devastated by
a sudden natural disaster or a rural South Dakota community
that has experienced a long, steady decline and may be feel-
ing hopeless—these events can have two very different
effects on Political Capital.
The community may feel distrust and anger toward the gov-
ernmental agencies and representatives that should be help-
ing them. Or the community can make Political Capital. it
can spur people to get involved in political matters and make
a difference. Negative events in communities may be the cat-
alyst that increases awareness of political and social capital
and thus motivate change.
Political Capital is all about the power structures in com-
muities. Power can be held by individuals, groups, or insti-
tutions. Lack of Political Capital can stop community proj-
ects from going forward, while access to Political Capital
can open doors to a wealth of opportunities. Understanding
the power structures in your community is an important key
to creating community change.
References
Flora, C., J. Flora, S. Fey. 2004. Rural Communities: Legacy and Change
(2nd ed). Boulder, Colo: Westview Press.
Putnam, R. 2000. Bowling Alone: The Collapse and Revival of American
Community. Simon and Schuster
7-2007
 ExEx 16011
Community
Capitals
Series #7

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Built Capital
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven
dimensions called community capitals. Capital is any type of resource capable of producing additional
resources. When those resources or assets are invested, they become capital (Flora, et al. 2004). Community
capitals are all of the things in a community that have the potential to be a resource that can be invested, saved,
or used up. This is the seventh in the series.

Think of Built Capital as the foundation of a community. In
some ways, Built Capital is the delivery system, the infra-
structure of how other capitals can be used. Facilities, roads,
power plants, and technology are physical infrastructures that
can be used to strengthen local development. Some examples
of Built Capital might include:
• Sewer and water systems
• Buildings
• Machinery
• Roads
• Electronic communications
Cornelia Flora, Director of the North Central Regional
Center for Rural Development (NCRCRD) explains (Flora et
al. 2004) that Built Capital is:
Physical infrastructure that enhances other community
capitals because:
• It serves multiple users
• It can be locally maintained and improved
• It links local people together equitably
• It links local people, institutions and businesses to
the outside
Built Capital is something that needs to be managed by a
community. Often Built Capital is in the background, it is the
things we don’t notice until they are not there or they are in
poor condition. They are the basic services, facilities and
structures that communities expect to have. Flora explains
that “Built Capital enables individuals and businesses to be
more productive within the community. Although the Built
Capital of a community is necessary, it cannot ensure the
economic health and well-being of that community.
People must be able to use the infrastructure in productive
ways.”
Successful Communities
Built Capital does not usually stand on its own. A common
example of this is when communities say “if we could just
get a…‘insert a typical economic development project here’
to come to our town, that would solve our problems.” The
communities may offer incentives, such as tax incentives,
spec buildings, or savings on utilities, but when the incen-
tives end, the commitment from the company often ends. It is
only when Built Capital is paired with the other community
capitals that it is most effective.
Another common example of Built Capital not being the
end all and be all to community development is one that we
see in many communities: the wish for a youth center. The
thinking often is short sighted, assuming that the Built
Capital will in itself solve a Social Capital problem. “If we
only had a youth center, then the kids would be off the
streets.…”
An investment in Built Capital is only part of the solution.
The other investments are in Social and Human Capital.
Build the youth center without providing volunteers to run it,
people to invest their time and money in the upkeep, or kids
who want to be there, and you have wasted a lot of money
on a building that will stand empty.
People are the common ingredient in successful community
projects. The community capitals rarely stand alone, com-
munities exist as a system, and all of the things that occur
have impacts on the other parts of the system.
Changing South Dakota Communities
Most communities in South Dakota have infrastructure that
is several decades old and is starting to deteriorate.
Financing for these projects is getting more difficult to
obtain. Local, state, and federal money in the form of grants
may be available, but the majority of the available funding is
gained through tax revenue.
Unfortunately, many small communities are also facing pop-
ulation decline, which translates into a smaller tax base,
which makes funding large infrastructure projects all the
more difficult. Small communities face great economic chal-
lenges as they attempt to update their old systems and add
new Built Capital such as telecommunications equipment for
internet and cellular technology.
In rural areas where resources are scarce, a relevant question
for communities is who should be responsible for the cre-
ation, upkeep, and improvements of the Built Capital in the
community. Can and should private resources be used to
fund public infrastructure?
For instance, who should maintain a local swimming pool
that is built using shared resources, both public and private?
Who has the right to say who has access to the pool or what
the costs or user fees should be? Public goods and services
are controlled and regulated by laws and statutes, while pri-
vate goods and resources can choose to be as inclusive or
exclusive as they want to be. As resources become scare,
more communities will have to rely on joint funding, such as
the pool example, and they will also have to determine new
rules between public versus private goods.
Built Capital in a community also includes housing. A com-
mon theme in rural communities is the lack of good quality,
affordable housing. As rural populations decline and access
to jobs moves to urban centers, communities are faced with
a double edged dilemma. People want the quality of life in a
small town, but they also need jobs, health care, shopping,
and services found in larger towns.
Many communities think that just building more housing
will make people want to move there. But without all of the
other types of community capitals in place, Built Capital
cannot stand alone. It is clear that the community capitals
work as a system. Communities that make plans using the
community capitals framework will be able to see how the
seven community capitals intertwine with each other.
References
Bregendahl, C. 2005. The Advanced Internet Satellite Extension Project.
Community Capitals Framework: Research, Evaluation and Practice.
NCRCRD Conference.
Emery, M., S. Fey, C. Flora. 2005. Using Community Capitals to Develop
Assets for Positive Community Change. Community Capitals
Framework: Research, Evaluation and Practice. NCRCRD Conference.
Flora, C., J. Flora, S. Fey. 2004, Rural Communities: Legacy and Change
(2nd ed). Boulder, Colo: Westview Press.

This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16011.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status. 7-2007
 ExEx 16012
Community
Capitals
Series #8

College of Agriculture & Biological Sciences / College of Family & Consumer Sciences / USDA

Community Capitals:
Financial Capital
Cheryl Jacobs
Community Leadership Development Extension Associate

The Community Capitals Series introduces the concept of measuring success in communities based on seven
dimensions called community capitals. Capital is any type of resource capable of producing additional
resources. When those resources or assets are invested, they become capital (Flora, et al. 2004). Community
capitals are all of the things in a community that have the potential to be a resource that can be invested, saved,
or used up. This is the eighth in the series.

Financial Capital is often the easiest to measure, and it can The BOCF board works together to come up with ideas
be used to measure the other community capitals. Financial (Social and Human Capital) and decides to use the money to
Capital is money that is used for investment rather than con- build a new park in the community. The new park includes
sumption. Money is a tangible asset that can be measured; newly planted trees, a bird habitat area, and a nature trail
profits and losses can be tracked; and it is easily turned into (Natural Capital) making it a great place for individuals and
other kinds of assets. Money can be used in two basic ways: families.
consumption, where money helps us to purchase goods and
services; and investment, where money earns interest which Soon, word spreads in the region that this community is
can be used to earn more money. making positive changes in the town. That attracts new resi-
dents who shop on Main Street, paying the 1% sales tax,
Some examples of Financial Capital in a community might which grows the Build Our Community Fund…and the cycle
include: continues.
• Bond issues to aid community economic development
• Foundation grants as a source of external financial support
• Revolving loan funds More
Population to
• Micro loans to aid community economic development Support the Shopping on
Economy Main Street
• Tax abatements
• Gifts
• Transfers of wealth
Financial
Financial Capital at Work in a Community The Town
Attracts New Capital at 1% Sales Tax Goes
An illustration of how Financial Capital has the potential to Residents
Work in a Into the “Build Our
Community Fund”
impact several other types of capital can be found in this
Community
example.

The city council voted (Political Capital) to use a 1% sales The New
tax to help fund community projects. When people shop at Park Makes The BOFC
the Town a Board Uses the
the stores on Main Street they pay a 1% sales tax which gen- Nicer Place to Money to Build
Live a New Park
erates money (Financial Capital) to be deposited into the
“Build Our Community Fund” (BOCF).
Using Financial Capital For Consumption or Investment
We can further define the difference between using Financial
Capital for consumption or investment. An example of
investment can simply mean purchasing a savings bond,
which earns interest, which can be used to develop other
types of capital.
But in our definition of community capitals, capital is any
resource capable of producing other resources. Cornelia
Flora, director of the North Central Regional Center for
Rural Development (NCRCRD) explains that if you use
Financial Capital (money) to “…buy a car for personal
enjoyment, the car is not considered a form of capital. But if
you buy a car in order to run a shuttle service, the car
becomes a means for generating income. A resource (the
car) is capable of producing other resources (your income)”
(Flora et al. 2004).
Financial Capital is typically the most easily converted capi-
tal of the seven community capitals and for some the easiest
to measure, because spending dollars and cents is a tangible
measurement that people understand. Financial Capital is
not always in the form of money. It can also include things
like stocks, bonds, lines of credit, and real estate.
Grants and Loans
Another common example of Financial Capital available to a
community includes grants and loans. While these are good
sources of funding to obtain for community development,
they are not the only answer. Many communities find that
while grant writing is not difficult, it needs to be learned to
be successful.
resources to seek out. Experienced grant writers will tell you
that success rates for getting a grant funded are not that high,
so persistence is the key.
Another example of how communities are creating another
form of available Financial Capital is through the creation of
community foundations. Local citizens, businesses, and
organizations invest assets in a foundation that provides
loans and grants to entrepreneurs, business owners, and a
variety of community economic development and betterment
projects. These local foundations have a say in how local
projects are funded and are specific to a set of goals outlined
by the community.
In addition to seeking grants and loans, communities are
starting to look at the wealth found right within their own
communities. Too often major investors living in their own
communities are overlooked. Communities can encourage
local citizens to do estate planning and transfers of wealth to
a community fund rather than or in addition to other charita-
ble causes. Communities can cultivate Financial Capital by
making the most of intergenerational transfers of wealth and
providing ways for people to give back to their community.
Financial Capital is more than just money, it is often based
on the connections to power (Political Capital) and is proba-
bly the one community capital that has the potential to
impact all of the other capitals. It is also often the focus of
all community development, as money is the resource that
drives many community change projects. Communities
depend on Financial Capital to invest in the growth of the
community and to ensure sustainability for the future.

There are two main sources of grant funds available to com-

munities; government grants and foundation grants.
Government grants are typically more complicated and often
have strict guidelines for applying. Qualifications, applica-
tions, and deadlines for foundation grants differ depending
on the entity offering them, but are another good source of
References
Flora, C., J. Flora, S. Fey. 2004. Rural Communities: Legacy and Change
(2nd ed). Boulder, Colo: Westview Press.
Emery, M., S. Fey, C. Flora. 2005. Using Community Capitals to Develop
Assets for Positive Community Change. Community Capitals
Framework: Research, Evaluation and Practice. NCRCRD Conference.

This publication can be accessed electronically from the SDSU College of Agriculture & Biological Sciences publications page at
http://agbiopubs.sdstate.edu/articles/ExEx16012.pdf
South Dakota State University, South Dakota counties, and U.S. Department of Agriculture cooperating. South Dakota State University is an Affirmative Action/
Equal Opportunity Employer and offers all benefits, services, education, and employment opportunities without regard for race, color, creed, religion, national ori-
gin, ancestry, citizenship, age, gender, sexual orientation, disability, or Vietnam Era veteran status. 7-2007